The Great Divergence: Dow Jones vs. Minimum Wage

Bars show minimum wage as % of the Dow (left axis) — line shows Dow Jones in real dollars (right axis)

Min. wage % of Dow — 1940

0.259%

$0.30 vs Dow $116

Min. wage % of Dow — 2025

0.017%

$7.25 vs Dow $42,270

Relative value decline

−93%

Min. wage 15× less relevant

Dow Jones growth

+38,872%

$116 → $42,270

Min. wage as % of Dow (left axis) — falling bars = workers falling further behind

Dow Jones in $ (right axis) — exponential rise

≥ 0.20% — fair relative value

0.10–0.20% — declining

0.05–0.10% — severely lagging

0.02–0.05% — critical gap

< 0.02% — historic low

As the Dow's exponential curve climbs the right axis, the bars representing minimum wage as a share of the Dow collapse toward zero on the left axis — two lines moving in exact opposition. No federal minimum wage existed before 1938.